Avio S.p.A. (AVIO) AI Stock Analysis

• Market Cap: €1.36B
• Dividend Yield: 0.49%
• Average Volume (3M): 656.74K
• Price to Earnings (P/E): 157.0
• Beta (1Y): 0.41
• Revenue Growth: 32.64%
• EPS Growth: -38.77%
• Country: IT
• Employees: 1,352
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): N/A
• Shares Outstanding: 46,789,543
• 10 Day Avg. Volume: 749,352
• 30 Day Avg. Volume: 656,743
• PEG Ratio: -7.50
• Price to Book (P/B): 1.16
• Price to Sales (P/S): 0.73
• P/FCF Ratio: 13.99
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €54.75
• Price Target Upside: 124.39% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 52 Neutral
• Price Target: €29.00 ▲(18.85% Upside)

Avio S.p.A.'s overall stock score is primarily influenced by its mixed financial performance and bearish technical indicators. The company's strong balance sheet and cash flow generation are positive, but declining profit margins and operational inefficiencies are concerns. The technical analysis indicates weak market momentum, and the high P/E ratio suggests overvaluation. These factors collectively result in a moderate overall stock score.

Positive Factors

Revenue Growth

Consistent revenue growth and strong cash flow generation indicate the company's ability to expand its market reach and invest in future growth opportunities.

Balance Sheet Health

A strong balance sheet with low leverage provides financial stability and reduces risk, allowing the company to navigate economic uncertainties effectively.

Cash Generation

Significant improvement in cash generation enhances the company's ability to fund operations, invest in R&D, and pursue strategic initiatives without relying heavily on external financing.

Negative Factors

Declining Profit Margins

Decreasing profit margins suggest rising costs and pricing pressures, which could impact profitability and limit the company's ability to reinvest in growth.

Operational Inefficiencies

Negative EBIT margin highlights challenges in managing operational costs, which may hinder profitability and require strategic adjustments to improve efficiency.

Low Profitability

Low net profit margin reflects difficulties in converting revenue into profit, potentially affecting the company's ability to generate shareholder value and sustain growth.

Avio S.p.A. Business Overview & Revenue Model

Company Description

Avio S.p.A. is a leading aerospace company specializing in the design, development, and production of propulsion systems for space launch vehicles and satellite propulsion. Headquartered in Italy, Avio operates primarily in the aerospace and defense sectors, providing innovative solutions for both institutional and commercial clients. The company is known for its expertise in solid and liquid propulsion systems, as well as its role in the European space program through partnerships with major organizations like the European Space Agency (ESA).

How the Company Makes Money

Avio generates revenue primarily through contracts for the development and manufacturing of propulsion systems for space launch vehicles, including the Vega and Ariane programs. Key revenue streams include government contracts from national and international space agencies, commercial launch services, and partnerships with aerospace companies for joint projects. The company's involvement in the European Space Agency's initiatives and collaborations with other aerospace firms enhances its capabilities and market reach, contributing significantly to its earnings. Additionally, Avio's focus on research and development allows it to innovate and expand its product offerings, providing further avenues for revenue growth.

Avio S.p.A. Financial Statement Overview

Summary

Avio S.p.A. presents a mixed financial performance. The company shows positive revenue growth and strong free cash flow generation, indicating potential for future growth. However, declining profit margins and operational inefficiencies pose challenges. The balance sheet is strong with low leverage, providing financial stability. Overall, while there are areas of concern, the company maintains a stable financial position with opportunities for improvement in profitability and operational efficiency.

Income Statement

Avio S.p.A. shows a mixed performance in its income statement. The company has achieved a modest revenue growth rate of 3.88% TTM, indicating a positive trend in sales. However, the gross profit margin has decreased over time, from 33.14% in 2023 to 21.99% TTM, suggesting increased cost pressures. The net profit margin is low at 0.89% TTM, reflecting challenges in translating revenue into profit. The EBIT margin is negative, indicating operational inefficiencies, though the EBITDA margin remains positive at 5.08% TTM, showing some resilience in cash earnings.

Balance Sheet

Avio S.p.A.'s balance sheet reflects a stable financial position with a low debt-to-equity ratio of 0.036 TTM, indicating conservative leverage. The return on equity is modest at 1.94% TTM, suggesting limited profitability from equity investments. The equity ratio is strong, highlighting a solid capital structure with a significant portion of assets financed by equity. Overall, the balance sheet suggests financial stability with low risk from debt.

Cash Flow

The cash flow statement of Avio S.p.A. shows a robust free cash flow growth rate of 99.76% TTM, indicating significant improvement in cash generation. The operating cash flow to net income ratio is low at 0.045 TTM, suggesting that operating cash flows are not fully covering net income. However, the free cash flow to net income ratio is high at 0.97 TTM, demonstrating effective cash conversion from profits. Overall, the cash flow position is improving, but there are areas for enhancement in operating cash flow efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	260.36M	483.99M	343.70M	73.22M	324.14M	206.11M
Gross Profit	71.22M	130.03M	113.89M	72.40M	96.64M	105.57M
EBITDA	9.63M	23.97M	22.62M	21.45M	30.15M	35.34M
Net Income	-565.66K	6.09M	6.49M	-435.00K	8.48M	14.12M
Balance Sheet
Total Assets	1.08B	1.09B	1.06B	1.29B	1.24B	1.12B
Cash, Cash Equivalents and Short-Term Investments	86.50M	101.68M	95.59M	131.40M	104.61M	124.67M
Total Debt	11.24M	11.59M	19.46M	56.95M	47.45M	62.03M
Total Liabilities	762.05M	779.52M	744.75M	982.10M	926.12M	810.48M
Stockholders Equity	310.59M	302.83M	300.62M	293.66M	302.48M	303.48M
Cash Flow
Free Cash Flow	-14.46M	25.10M	6.14M	33.22M	7.54M	12.80M
Operating Cash Flow	-9.06M	60.26M	42.48M	65.74M	41.26M	47.40M
Investing Cash Flow	-10.27M	-35.16M	-38.85M	-34.23M	-33.71M	-34.60M
Financing Cash Flow	4.15M	-19.01M	-39.44M	-4.72M	-27.59M	-32.44M

Avio S.p.A. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 24.40
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:AVIO, the sentiment is Negative. The current price of 24.4 is below the 20-day moving average (MA) of 28.17, below the 50-day MA of 34.46, and above the 200-day MA of 23.25, indicating a neutral trend. The MACD of -2.57 indicates Positive momentum. The RSI at 31.90 is Neutral, neither overbought nor oversold. The STOCH value of 18.10 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IT:AVIO.

Avio S.p.A. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
FCT	63 Neutral	€7.03B	54.23	14.30%	―	18.44%	―
LDO	60 Neutral	€29.35B	28.03	12.10%	1.14%	14.13%	5.99%
AVIO	52 Neutral	€1.36B	157.01	1.96%	0.49%	32.64%	-38.77%